Quick Answer
A franchise lets you use an existing brand, recipes and operating system, but you pay franchise fees and royalties and accept restrictions such as designated suppliers, equipment and fit-out; your own brand gives you flexibility and control over profit, but you build recipes, supply chain, training and marketing yourself. In Taiwan, under the Fair Trade Commission’s guidelines on franchisors’ business conduct, franchisors must provide key information (fees, restrictions, contract terms and more) 10 days before entering a franchise relationship, give franchisees at least 5 days to review the contract before signing, and deliver the contract within 30 days of signing.
Franchise vs Your Own Brand
| Comparison | Franchise | Own brand |
|---|---|---|
| Brand awareness | Ready-made | Built from scratch |
| Recipes and SOPs | Provided by headquarters | Developed yourself |
| Ingredient purchasing | Often must buy from headquarters or designated suppliers | Choose your own suppliers |
| Upfront costs | Franchise fee, training fee, equipment, fit-out | Equipment, fit-out, brand design |
| Ongoing costs | Possibly royalties and marketing fees | Your decision |
| Flexibility | Limited by contract | High |
| Best for | People without F&B experience who want to open quickly | People with product ideas who want their own brand |
What Must Franchisors Disclose in Taiwan?
Under Point 3 of the Fair Trade Commission’s guidelines, franchisors must provide the following 10 days before entering or preparing to enter a franchise relationship (or a reasonable or agreed period):
- Pre-opening costs: amounts or estimates for the franchise fee, training fee, goods, raw materials, capital equipment and fit-out.
- Ongoing costs: how royalties are charged, plus fees for operating guidance, marketing and purchased goods or materials.
- Licensed trademarks, patents and copyrights: scope and limits.
- Operating assistance and training: content and method.
- Plans for other outlets of the same system in the trading area.
- Restrictions during the franchise: for example mandatory suppliers, minimum orders, designated equipment and fit-out.
- Conditions for amending, terminating and rescinding the contract.
Point 4 also provides that failing to allow at least 5 days (or a reasonable period) to review the contract before signing, or failing to deliver the contract within 30 days of signing, is an obviously unfair practice.
What to Check Before Signing
- Total cost: every pre-opening and ongoing cost.
- Purchasing restrictions: must you buy ingredients only from headquarters, and how are prices adjusted?
- Territory protection: will the same brand open nearby?
- Exit terms: conditions and costs for early termination.
What Does Starting Your Own Brand Take?
Your own brand means building menu and recipes, ingredient supply chain, SOPs and training, and branding and marketing yourself. Tang Sugar’s tea shop opening services don’t use a fixed template; we help with product structure, ingredient setup, opening process and operations based on your market. To take a brand overseas, see our brand licensing and distribution service.
Products in this article
All 483 Bubble Tea & Boba Ingredients →
FAQ
Is a bubble tea franchise or my own brand better?
There’s no single answer. A franchise suits people without experience who want to open quickly; your own brand suits people with product ideas who want flexibility and control.
What must a franchisor disclose before I sign in Taiwan?
Under Fair Trade Commission guidelines: pre-opening and ongoing costs, IP licensing, training, trading area plans, purchasing and equipment restrictions, and contract amendment and termination terms.
How long is the franchise contract review period in Taiwan?
At least 5 days, or a reasonable period determined case by case, before signing.
What does it take to start my own bubble tea brand?
A menu and recipes, ingredient supply chain, SOPs and staff training, and brand design and marketing.
How much is a bubble tea franchise fee?
It varies by brand, store format and contract, with no standard rate. In Taiwan, franchisors must disclose amounts or estimates for the franchise fee, training, equipment and fit-out 10 days before signing, so compare written disclosures from several brands.
What franchise pitfalls should I watch for?
Check whether all costs are disclosed, whether you must buy from headquarters and at what prices, designated equipment and fit-out, territory protection, how royalties and marketing fees are calculated, and termination terms and penalties. Use the review period and get professional help with clauses you don’t understand.
How long does it take a bubble tea franchise to break even?
It depends on upfront investment, rent, staff, daily cups, average ticket and margin. Do a break-even calculation before opening; see How to Calculate Bubble Tea Shop Profit Margin.
Further Reading
Sources
- Fair Trade Commission, Taiwan: Guidelines on Franchisors’ Business Conduct (in Chinese)
- Tang Sugar: Tea Shop Opening Services
